Harehills leases on residential deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Harehills will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some situations you may not qualify. There are prescribed timetables and steps to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Harehills with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Harehills,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Harehills valuers.
Aiden was the the leasehold owner of a high value flat in Harehills being marketed with a lease of a few days over fifty eight years unexpired. Aiden on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Aiden to invoke his statutory right. Aiden procured expert advice and secured satisfactory resolution without going to tribunal and sell the flat.
Last Winter we were called by Dr T Lefèvre , who was assigned a lease of a first floor apartment in Harehills in August 2003. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Identical homes in Harehills with an extended lease were in the region of £254,200. The mid-range amount of ground rent was £60 collected annually. The lease came to a finish in 2076. Given that there were 51 years outstanding we estimated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 not including professional charges.
Last Winter we were e-mailed by Mr and Mrs. A Lee , who owned a garden flat in Harehills in June 1996. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Similar residencies in Harehills with a long lease were valued around £210,600. The mid-range amount of ground rent was £45 collected every twelve months. The lease ended in 2087. Given that there were 62 years unexpired we approximated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including costs.